Chime: Leading the Pack of Neobanks in the US
| Case Code: BSTR623 Case Length: 12 Pages Period: 2013- 2020 Pub Date: 2021 Teaching Note: Available |
Price: Rs.300 Organization: Chime Industry: Financial Services Countries: United States Themes: Banks and Banking, Banks and Banking, Business Level Strategies |
Abstract Case Intro 1 Case Intro 2 Excerpts
Background
In 2013, Chris Britt (Britt), and Ryan King (Ryan) thought of launching a bank that would not rely on bank fees or profit from a customer’s financial mistakes but would directly help clients to increase their financial status. Britt was a former senior executive at GreenDot and Visa while Ryan was a former engineering Vice President at Plaxo . Initially, the founders concentrated on millennials who were struggling post the financial crisis and couldn’t afford out-of-pocket costs for their banking relationship. At the same time, Britt and Ryan realized the need for a mobile-app based banking service for millennials. Accordingly, in 2013, they founded a digital bank in San Francisco, California, US, and named it Chime. In August 2013, Chime raised $3.8 million from a Seed Round. In April 2014, Chime was launched for the public on the Dr Phil Show . The bank issued Visa debit cards to its account-holders and also enabled users to access online banking through chime.com or via the mobile app for Android or iOS. In 2014, Chime signed up 500,000 customers who were in their late 20s and made transactions between US$ 50,000 and US$ 70,000 per year..
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